And yet a lot of us didn't see those new dollars in circulation, we didn't get pay raises and or lost hours.
“And yet a lot of us didn’t see those new dollars in circulation, we didn’t get pay raises and or lost hours. “
These are “authorized” dollars. They were created with a the click of a mouse. They allow the government to buy things. They do, eventually, effect the economy by driving down the purchasing power of our “printed” dollars. If you’re China, and you’ve priced Wal-Mart widgets at $1/each, they are now $3/each. We, the public, are not seeing the full effect of this because we, the public, are panicked and hording our dollars.
When Carter increased the money supply 12% Paul Volker increased the interest rate to 20% for three years to compensate. But the Fed is no longer independent. It has tied down the interest rate (the economy’s safety valve) to somewhere between 0-1%. This is compounding the down-stream impact of the 300% increase in the money supply.